Belim logo

Belim

belim.ptClient satisfaction
Show options

News and developments

Taxation of cryptoassets in Portugal (2025)

19/02/2025

What are Cryptoassets?

Cryptoassets are digital representations of value or rights that can be transferred and stored electronically, using distributed ledger technology (such as blockchain). Although they can be used as a means of payment, their primary function has been investment and speculation. Examples of cryptoassets include:

  • Cryptocurrencies– Digital currencies such as Bitcoin and Ether.

  • Stablecoins– Digital currencies pegged to stable assets such as fiat currency.

  • NFTs (Non-Fungible Tokens)– Digital representations of tangible and intangible assets.

    • Since 1 January 2023, with the entry into force of the State Budget for 2023, the taxation of income derived from cryptoassets has been regulated in Portugal. However, income derived from NFTs is expressly excluded from taxation.

    How are Cryptoassets Taxed?

    The taxation of cryptoassets depends on the entities involved and the nature of the transactions.

    If the recipient of the income is an individual:

    Taxation applies under the Personal Income Tax (IRS), and income derived directly from cryptoassets (excluding NFTs) may be taxed under the following categories:

  • Category B (Business and Professional Income): This applies to income derived from mining and issuing cryptoassets.

    • The taxable income can be assessed through the simplified regime or the organised accounting regime and will be taxed under the general regime at progressive IRS rates.

  • Category E (Investment Income):This applies to passive income or income derived from the application of cryptoassets (e.g. income from staking cryptoassets). However, there is no immediate taxation when income is received in cryptoassets (e.g. staking of Solana received in Solana), only when converted into fiat currency (e.g. lending of Tether with interest received in USD). Cryptoasset investment income is generally taxed at a special rate of 28% (without prejudice to the option for aggregation) or at a rate of 35% if it originates from a tax haven.

  • Category G (Capital Gains):This applies to income from the sale of cryptoassets. The loss of Portuguese tax residency is considered equivalent to a sale for taxation purposes. The taxable capital gain corresponds to the sale value minus the acquisition value (purchase, exchange, etc.) and is determined using the FIFO (First In, First Out) method, meaning that the first acquired cryptoassets are the first to be considered sold. This can impact the tax calculation depending on price variations over time. Capital gains on cryptoassets are generally taxed at a special rate of 28% (without prejudice to the option for aggregation) or at a rate of 35% if originating from a tax haven. If the cryptoassets are held for more than 365 days, the capital gain is exempt from IRS. It is important to highlight that receiving cryptoassets as payment for any other category of income is considered income in kind and should be taxed according to the rules of the respective category at its equivalent monetary value (e.g. salary payments in cryptoassets should be taxed under Category A rules and the rules regarding the monetary equivalence of in-kind income).

    • If the entity receiving/transacting cryptoassets is a company:

    Income from cryptoassets (or paid in cryptoassets) is subject to Corporate Income Tax (IRC). All income and expenses incurred by the taxable entity, including those related to cryptoassets, must be reflected in the company’s accounting records to allow for the assessment of taxable profit, which will then be subject to IRC.

    Is a donation of cryptoassets subject to tax?

    Yes, the free transfer of cryptoassets, whether by donation during the donor’s lifetime or through inheritance, may be subject to Stamp Duty at a rate of 10%. Free transfers between parents and children may be exempt but should, in principle, still be reported to the Portuguese Tax and Customs Authority.

    Is it mandatory to declare cryptoasset income?

    Yes, individuals must report their cryptoasset-related income annually through their IRS tax return. It is important to note that transactions involving cryptoassets held for more than 365 days that result in exempt capital gains must still be reported. Companies must maintain accounting records of their income and submit the respective annual IRC declaration. It is also worth noting that cryptoasset service providers registered in Portugal (e.g. trading platforms) are required to report all transactions carried out by their clients in the previous year to the Portuguese Tax and Customs Authority by 31 January, meaning that tax authorities will have this information to cross-check with taxpayers’ reports.

    Final Notes

    The taxation of cryptoassets has brought greater clarity to a growing sector. However, there are various tax nuances to consider depending on the type of transaction and the holding period of the assets, as well as the interaction of cryptoasset taxation rules with applicable tax regimes or benefits, such as the Non-Habitual Residents (NHR) regime or the Tax Incentive for Scientific Research and Innovation (IFICI).

    https://belim.pt/en/news-articles/news/taxation-of-cryptoassets-in-portugal-2025/

    Content supplied by Belim